5 Questions to Ask a Condo Board Before Purchasing

For anyone looking to invest in a condo in Toronto or elsewhere in Canada, the importance of understanding the condo board dynamics is one factor that cannot be overlooked. Apart from Kitchen and bathrooms, the condo board is more or less the engine that drives the building in the context of everyday activities ensuring the building’s operations runs seamlessly. For those seeking to buy property in Toronto, whether it’s a downtown skyscraper or a condo in the suburbs, asking relevant questions well in advance goes a long way in making an informed choice.

Here are five fundamental questions that every budding property buyer should put forward before making the purchase with the condo board.

1. What Are the Current Levels of Condo Charges, and What Are They Allocated Towards?

Condo fees are charged as a standard re-occuring charge to every owner. A few critical questions include:

Cost Coverage: Are they covering utilities or maintenance or some other amenities.

Fee history: Is there historical data available regarding fee increments and foreseen increments.

Reserve Fund: Are there adequate reserves set aside for major repairs.

A clear communication of the fund’s objectives and its corresponding allocation adds to the understanding of the physical health of the building.

2. Are There Any Current or Future Building Related Projects To Be Conducted At The Shore?

Projects building for future enhancement or remodelling of the current issues or even unforeseen issues:

Knowing your expected cash outgoings goes a long way in ensuring that you are prepared and avoid any financial shocks.

3. What Useful Guidelines Should I Keep In Mind?

Condo owners should take note of the rules that the condos have in place. An example is:

Pet policies: Do owners need to get approval in advance before acquiring pets and what are the rules regarding the same?

Short term rentals: While on vacation can owners get someone to manage their apartment by listing it on sites that are more or less like AirBnB?

Renovations: May a unit owner engage in renovations that alter the appearance of the unit or the entire building?

These laws are to be observed and understood in order to ensure that there is full compliance in with the condo regulations by the unit owners.

4. Are There Ways to Resolve Disputes Between Residents?

Conflicts in dense occupancy tend to enhance. It would, therefore, wise to consider the following:

Conflict resolution methods: How are the disputes between the unit owners handled and by whom?

Handling procedures for complaints: Are there specific guidelines that address grievances?

It is possible to keep disturbance to a minimum by having a constructive condo board.

5. What Coverage Does The Insurance Have?

Knowing the scope of insurance should be a priority:

Scope of coverage: Do the covered aspects include the areas in common or even the general framework of the building?

Responsibilities for owners: What specific coverage are unit owners expected to maintain?

Special coverage is mandatory to guard against defalcations that might occur without notice.

How Building Management Affects the Community and Why It Should Matter

The answers to the above questions help to know in detail the financial soundness of the building, what are the community guidelines, as well as how the building is run. It does not matter whether one is looking to buy a house in New York City or a condominium in Toronto or Montreal, this kind of research helps to ensure that the property being bought suits their requirements.

Common Questions When Buying a Condo in Toronto

What do I Have to Look Out for When Purchasing a Condo in Toronto?

Check the condo fees, rules of the building and the finances.

Is there any possibility to renegotiate the condo fees?

No, these are standard rates set by the condo administration with respect to the requirements of the building.

Do all condos permit animals?

This is set by the policy of the specific building.

What is a reserve fund?

This is a reserve set aside for critical repairs and upkeep.

How much time elapses before condo fees go up?

That increase is determined by the socioeconomic environment and the needs of the building.

What is a special assessment?

That’s a one-off sum for surprise costs or large-scale plans.

Is it possible to rent out my condo?

Most condos allow rentals though short term ones may be limited.

Who runs the condo board?

Most times, they are residents who have been voted in or a management agency.

What is the difference between owning a freehold property and living in a condominium?

Freehold property owners will own the structure and the land, while those who live in a condo will only own their unit plus any common area fractionally.

Is purchasing a condo in Toronto a smart investment?

Yes indeed, the demand for renting as well as that for resale of Toronto condominiums is high.